resolution no. 1158 - bonney lake, · pdf fileresolution no. 1158 ... expiration or waiver by...

RESOLUTION NO. 1158

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, PIERCE COUNTY, WASHINGTON, AUTHORIZING A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF BONNEY LAKE AND LOUISE R. & IRVING L. COPE, INA J. & RONALD A. SMOKE, AND EVELY N. & E.M. MOTHERSHEAD; AND HELEN M. THIEMAN FOR REAL PROPERTY IDENTIFIED AS ASSESSOR'S PROPERTY TAX PARCEL OR ACCOUNT # 05-20-35-3-062; AND AUTHORIZING A LEASE AGREEMENT WITH HELEN M. THIEMAN FOR SAME.

The City council of the City of Bonney Lake, Washington, does hereby resolve that the Mayor is authorized to execute the agreements attached hereto, which incorporate herein by this reference as part of the agreements Exhibits "A, B, C, D - To Purchase Agreement," Exhibit "A - To The Lease Agreement" and Exhibit "A - To Quit Claim Deed".

PASSED by the City Council this 29TH day of JuIYr"� ""-J

ATTEST:

arwood T. Edva son, Pro Tem City Clerk

APPROVED AS TO FORM:

REAL ESTATE PURCHASE AGREEMENT

This REAL ESTATE PURCHASE AGREEMENT ("Agreement") is made between the City of Bonney Lake ("the City"); Louise R. & Irving L. Cope, Ina J. & Ronald A. Smoke, and Evelyn N. & E.M. Mothershead (collectively, "Owners"); and Helen M. Thieman ("Life Estate Owner"). Owners and Life Estate Owner are collectively referred to herein as "Sellers."

RECITALS

A. Life Estate Owner is the owner of a life estate interest in that certain parcel of land located in Pierce County, Washington, a description of which is attached hereto as Exhibit A ("Property").

B. Owners own the Property by deed from the Life Estate Owner, subject to the Life Estate Owner's life estate.

C. The City desires to purchase the Property for public utility and other municipal purposes.

D. Life Estate Owner agrees to sell her interest in the Property to the City upon the terms and conditions set forth herein.

E. Owners agree to sell all of their interest in the Property to the City upon the terms and conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the terms and conditions of this Agreement, and the mutual covenants herein contained, the City, Owners, and Life Estate Owner hereby agree as follows:

1. Sale of the Property.

A. Owners shall sell and convey to the City, and the City shall purchase and acquire from Owners, upon and subject to the terms and conditions set forth in this Agreement, all of Owners' interest in the Property, which shall include: the land, together with any easements, appurtenances, rights, privileges, reversionary rights and improvements thereunto belonging or appurtenant to the Property; all timber and plants now in or on the Property; all right, title and interest of Owners in and to all alleys, strips, or gores of land, if any, lying adjacent to the Property; all utilities serving the Property; all right, title and interest of Owners in and to all rights-of-way, rights of ingress or egress or other interests in, on, or to, any land, highway, street, road, or avenue, open or proposed, in on, or across, in front of, abutting or adjoining the Property. In lieu of condemnation, the purchase price to be paid by the City to Owners shall be THREE HUNDRED FORTY FIVE THOUSAND AND NO/lOO DOLLARS ($345,000.00).

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B. Life Estate Owner shall sell and convey to the City, and the City shall purchase and acquire from Life Estate Owner, upon and subject to the terms and conditions set forth in this Agreement, all of Life Estate Owner's interest in the Property, which shall include: the land, together with any easements, appurtenances, rights, privileges, reversionaty rights and improvements thereunto belonging or appurtenant to the Property; all timber and plants now in or on the Property; all right, title and interest of Life Estate Owner in and ro all alleys, strips, or gores of land, if any, lying adjacent to the Property; all utilities serving the Property; all right, title and interest of Life Estate Owner in and to all rights-of-way, rights of ingress or egress or other interests in, on, or to, any land, highway, street, road, or avenue, open or proposed, in on, or across, in front of, abutting or adjoining the Property. In lieu of condemnation, and as consideration for such sale, the City agrees as follows:

i. The City shall lease a portion of the Property to Life Estate Owner for nominal rent and upon the other terms and conditions set forth in the Lease Agreement, attached hereto as Exhibit B. A memorandum of this lease shall be duly recorded.

ii. The City shall install, at its own expense, a public water system connection to the house occupied by Life Estate Owner and which is the subject of the Lease Agreement referenced in subsection (i) of this section. The City shall waive all connection, meter installation and system development charges related to the connection. Life Estate Owner will pay monthly water use charges as established by City ordinance.

2. Payment of the Purchase Price. On the Closing Date, the City shall deposit with an Escrow Agent of its choosing the entire amount of the purchase price owing to Owners, as adjusted for any amounts to be charged or credited against the purchase price in accordance with this Agreement, and shall also deposit with said Escrow Agent the executed Lease Agreement attached hereto as Exhibit B.

3. Closing. The closing ("Closing") shall be held at the offices of Hal J. Geiersbach Escrow in Bonney Lake, Washington ("the Escrow Agent") within thirty (30) days after the expiration or waiver by the City of the Due Diligence Period on a date chosen by the City upon at least ten (10) days prior written notice to Sellers (the "Closing Date"). The Closing shall occur when the deeds to the City are recorded and the purchase price and Lease Agreement are delivered to the Escrow Agent for delivery to Owners and Life Estate Owner, respectively. The terms and conditions of this purchase and sale agreement shall survive closing until outstanding obligations are complete.

4. Conditions to the City's Obligation.

(a) Investigation of the Property. Sellers shall provide or make available to the City for inspection and copying to the extent available or within Sellers' possession or control all documents and information pertaining to the Property, including but not limited to all soils reports and environmental studies, any existing surveys, architectural drawings or renderings, plans and specifications with respect to the Property. The City and its employees and agents shall have

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the right and permission from the date of this Agreement through the Closing Date (or earlier termination of this Agreement) to enter upon the Property or any part thereof at all reasonable times and from time to time for the purpose, at the City's cost and expense, of making all soil and other tests or studies under the provisions of this Agreement; provided, however, the City shall indemnify and hold harmless Sellers from and against any mechanic's or other liens or claims that may be filed or asserted against the Property or Sellers by any actions taken by the City in connection with the Property. The City's obligation to purchase the Property shall be subject to and contingent upon the satisfaction or waiver of the conditions set forth below.

(i) Inspection of the Property. The City's inspection and approval, in its sole and absolute discretion, of the physical condition of the Property (the "Property Inspection"), including, without limitation, the conducting of soil tests (including borings), toxic and hazardous waste studies, surveys, engineering, historical use, traffic and access studies, structural studies and review of zoning, subdivision, fire, safety and other compliance matters. If the Property Inspection indicates, in the City's sole and absolute discretion, that the Property is not suitable for the City's intended purposes, the provisions of subsection (c) of this section shall apply.

(ij) Satisfactory Performance. The City's approval, in its sole and absolute discretion, of the past performance and potential future performance of the Property for the City's intended purposes ("Performance Inspection"), including, without limitation, the zoning and other codes, covenants andlor restrictions affecting the use and future development of the Property, the restrictions, if any, to demolishing any existing improvements on the Property, the certificates, licenses and permits existing with respect to the Property and likelihood and anticipated cost of obtaining additional certificates, licenses and permits that the City desires to obtain with respect thereto, including but not limited to rezoning, subdivision, the availability and access to public roads, the availability of utilities and sewer capacity, the potential opportunity to acquire additional property adjacent to or contiguous with the Property, and d,e potential to finance the Property in a manner satisfactory to the City in all respects and demographic studies with respect to the neighborhood and region in which the Property is located. If the Performance Inspection indicates in the City's sole and absolute discretion that the potential future performance of the Property for the City's purposes is not satisfactory to the City, then the provisions of subsection (c) of this section shall apply.

(b) Due Diligence Period. As used herein, the term "Due Diligence Period" means the period ending on the date that is thirty (30) days from execution of this Agreement by all parties; however, the City may, at its option, extend the Due Diligence Period for up to two additional thirty (30) day periods, provided that notice is given prior to the expiration of the respective periods.

(c) The City's Right to Terminate. If the conditions set forth in subsection (a) of this section are not satisfied in the City's sole and absolute discretion, the City shall have the right to terminate its rights and obligations under this Agreement by sending written notice within the Due Diligence Period to Sellers and Escrow Agent ("Termination Notice").

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5. Additional Closing Conditions. In addition to the conditions stated in subsection 4(a) above, the City's obligation to purchase the Property shall be subject to the following conditions which must be satisfied by Sellers as of the Closing unless waived by the City at the Closing.

(a) All representations and warranties of Sellers contained herein shall be true, accurate and complete at the time of the Closing as if made again at such time;

(b) Sellers shall have performed all obligations to be performed by them hereunder on or before the Closing (or, if earlier, on or before the date set forth in this Agreement for such performance); and

(c) The physical condition of the Property shall be the same as on the date hereof, and no timber or plants shall be removed from the date hereof.

(d) All uses of the Property not specifically allowed by the Lease Agreement shall have terminated. At Closing, title to the mobile home on the Property shall be transferred to the City, along with any current lease regarding said mobile home and an accounting of payments made or to be made under that lease. It is the parties' expectation that the lease will be terminated by September 1, 2003, or 30 days following closing, whichever is later.

6. Closing.

(a) Time and Place. Provided that all the contingencies set forth in this Agreement have been previously fulfilled, the Closing shall take place at the place and time determined as set forth in section 3 of this Agreement.

(b) Documents to be Delivered by Sellers. For and in consideration of, and as a condition precedent to, the payment to Sellers of any of the purchase price, Sellers shall deliver to the City at the Closing the following documents (all of which shall be duly executed and acknowledged where required):

(i) Deeds. QUit claim deeds ("Deeds") substantially in the form attached hereto as Exhibit C for Life Estate Owner, and Exhibit D for Owners.

(ii) Excise Tax Affidavit. Excise tax affidavit(s) for filing with the Pierce County Auditor at the time of recording the Deeds.

(iii) Title Documents. Such other documents as shall be reasonably required by the Title Company as a condition to its insuring the City's good and marketable fee simple title to the Property free of any exceptions, other than the Permitted Exceptions.

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(iv) FIRPTA Affidavit. The affidavit of non-foreign status described in subsection 9(d) of this Agreement, as required by federal tax law.

(v) Surveys. Such surveys, site plans and plans and specifications relating to the Property as are in the possession or control of Sellers.

(c) Delivery by the City. The City shall deliver the purchase price less any credits pursuant hereto, along with the executed Lease Agreement and payment reimbursing the appraisal cost as provided in subsection (d) of this section.

(d) Pavment of Costs. Sellers and the City shall pay their own respective costs incurred with respect to the consummation of the purchase and sale of the Property including, without limitation, attorneys' fees. Notwithstanding the foregoing, the City shall pay: (i) the real estate excise tax, if any, and all transfer, sales and documentary stamp taxes or similar charges incidental to the conveyance of title to the Property to the City; (ii) the full cost of the Title Policy, if any; (iii) the full cost and expense of the escrow fee, if any; and (iv) the full cost and expense of recording the Deeds and any other recordable instrument related to the transaction. In addition, the City shall reimburse Sellers for the actual cost of an appraisal of the Property, not to exceed $4,000.00 (four thousand dollars).

(e) Real Property Taxes. Sellers shall pay at the Closing any taxes due or to become due with respect to the Property for the period up to the Closing Date.

(f) Cost Prorations.

(i) General real estate taxes, ad valorem taxes, assessments and personal property taxes for the calendar year in which the Closing occurs shall be prorated to the Closing Date, with the City paying taxes for the date of Closing;

(ii) All income and expenses attributable to the leasing and operation of the Property shall be prorated and apportioned between the City and Sellers as of the Closing Date, with the City being responsible for and credited with all income and expenses on and after the date of Closing and Sellers being responsible for and credited with all income and expenses prior to the Closing Date;

(iii) Utility charges shall be prorated as of the Closing; provided, however, Sellers shall attempt to obtain a final reading as of the Closing Date and shall pay the final billings directly to the appropriate utility companies. Sellers shall receive from the appropriate utility companies any and all deposits made by Sellers with respect to such utilities.

7. Condemnation. In the event of any commenced, to be commenced or consummated proceedings in eminent domain or condemnation (collectively "Condemnation") by a governmental entity other than the City respecting the Property or any portion thereof, on or after the date of this Agreement and prior to the Closing, the City may elect, by written notice to Sellers, to terminate its rights and obligations with respect to the Property under this Agreement. If the City makes such election, neither the City nor Sellers shall have any further liability with respect to the Property under this Agreement (provided that obligations relating to indemnification and attorneys' fees shall survive the termination of this Agreement). If the City fails to make such election prior to the Closing Date, this Agreement shall continue in effect, there

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shall be no reduction in the Purchase Price, and Sellers shall, prior to the Closing Date, assign to the City, by an assignment agreement in form and substance satisfactory to the City, its entire right, title and interest in and to any condemnation award or settlement made or to be made in connection with such Condemnation proceeding. The City shall have the right at all times to participate in all negotiations and dealings with the condemning authority and approve or disapprove any proposed settlement in respect to such matter. Sellers shall forthwith notify the City in writing of any such Condemnation respecting the Property.

8. Casualty. If any fire, windstorm or casualty occurs and materially affects all or any portion of the Property on or after the date of this Agreement and prior to the Closing, the City may elect, by written notice to Sellers, to terminate its rights and obligations with respect to the Property under this Agreement. If the City makes such election, neither the City nor Sellers shall have any further liability with respect to the Property under this Agreement provided that obligations relating to indemnification and attorneys' fees shall survive the termination of this Agreement). If the City fails to make such election prior to the Closing Date, this Agreement shall continue in effect, the Purchase Price shall be reduced by the amount of loss or damage occasioned by such casualty not covered by insurance, and Sellers shall, prior to the Closing Date, assign to the City, by an assignment agreement in form and substance satisfactory to the City, its entire right, title and interest in and to all insurance claims and proceeds to which Sellers may be entitled in connection with such casualty. The City shall have the right at all times to participate in all negotiations and other deals with the insurance carrier providing such coverage and to approve or disapprove any proposed settlement in respect to such matter. Sellers shall forthwith notify the City in writing of any such casualty respecting the Property

9. Sellers' Representations and Warranties. Sellers hereby make the following representations and warranties, which representations and warranties shall be deemed made by Sellers to the City also as of the Closing Date.

(a) Parties in Possession. To the best of Sellers' knowledge, there are no parties, other than the parties to this Agreement, which have a right to possession of all or any portion of the Property, and there are no leases or licenses affecting the Property.

(b) Condemnation or Assessment; Access. To the best of Sellers' knowledge, there is no condemnation or similar proceeding affecting the Property. The Property has full and free access from adjoining public highways, streets or roads, and to the best of Sellers' knowledge, there is no governmental proceeding which would impair or curtail such access.

(c) Compliance with Law. Sellers have not received nor are they aware of any notification from any governmental authority requiring any work to be done on the Property or advising of any condition (including, without limitation, hazardous substances or wastes) which would render the Property unusable or affect the usability of the Property or any part thereof for the purposes of the City.

(d) Foreign Person. Sellers are not foreign persons and are "United States Persons" as such term is defined in Section 7701(a) (30) of the Internal Revenue Code of 1986, as amended (the "Code") and shall deliver to the City prior to the Closing an affidavit evidencing such fact and such other documents as may be required under the Code.

(e) Mechanics' Liens. No labor, material or services have been furnished in, on

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or about the Property or any part thereof as a result of which any mechanics', laborers' or materialmen's liens or claims might arise.

(I) Litigation. There is no litigation pending, or threatened, which would constitute a lien, claim, or obligation of any kind on the Property, affect the use, ownership or operation of the Property or otherwise adversely affect the Property. For purposes of this clause, litigation includes lawsuits, actions, administrative proceedings, governmental investigations and all other proceedings before any tribunal having jurisdiction over the Property.

(g) Hazardous Substances. The Property is not in violation of any law, ordinance, rule or regulation relating to the environmental conditions thereon. To the best of Sellers' knowledge, there is no hazardous waste or other substance, including but not limited to, those that would be a hazardous waste, material or substance, toxic substance or pollutant, as defined under the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.c. Section 9601 et seq.; Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et. seq.; Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et. seq., the Clean Water Act, 42 U.S.C. Section 1251 et. seq., the Washington Environmental Policy Act, RCW Ch. 43.21, the Washington Water Pollution Control Act, RCW Section 90.48.010 et. seq., the Washington Hazardous Waste Management Act, RCW Ch. 70.105, the Washington Model Toxics Control Act, RCW Ch. 70.105D, and the regulations promulgated thereunder or under any applicable local or state environmental ordinance, statute, law, rule or reon, on or in the vicinity of the Property or on any parcels of land which abut the Property. Further, to the best of Sellers' knowledge: (i) there has been no release, spill, leak, discharge, emission, leak or disposal, (ii) there are no substances or conditions, in or on the Property or any other parcels of land which may affect the Property or use thereof which may support a claim or cause of action under any federal, state or local environmental statute, regulation, ordinance or other environmental regulatory requirements and (iii) there is no asbestos, PCBs or underground storage tanks located on the Property or which have been removed therefrom.

10. Covenants of Sellers. Sellers covenant and agrees as follows:

(a) From the date of this Agreement to the Closing Date, Sellers will not allow any lien to attach to the Property or any part thereof, nor will Sellers grant, create, or voluntarily allow the creating of, or amend, extend, modify or change, any easement, right-of-way, encumbrance, restriction, covenant, lease, license, option or other right affecting the Property or any part thereof without the City's written consent first having been obtained.

(b) From the date of this Agreement to the Closing Date, Sellers will notify the City of each event of which Sellers become aware affecting the Property or any part thereof promptly upon learning of the occurrence of such event.

(c) Sellers shall not enter into any leases, trust deeds, mortgages, restrictions, encumbrances, liens, licenses or other instruments or agreements affecting the Property without the prior written consent of the City from and after the date of this Agreement.

(d) From the date of this Agreement to the Closing Date, Sellers will perform all of their monetary and non-monetary obligations under all indebtedness (whether for borrowed money or otherwise) and the liens securing same pertaining to the Property or any portion thereof, if any.

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(e) Sellers shall maintain in force all policies of fire and other casualty and liability insurance maintained as of the date hereof with respect to the Property until the Closing Date.

In the event of a default by Sellers in the performance of its obligations under this section, the City (without any obligation to do so) may, upon five (5) days prior written notice to Sellers and Sellers' failure to cure said default prior to the expiration of said five (5) day period, cure such default and may offset the cost of doing so against the Purchase Price payable at Closing.

11. Event of Default.

(a) Default by Sellers. If the Closing does not occur by reason of any default under this Agreement by Sellers or any one of them: (i) the City may elect to treat this Agreement as terminated, in which case all payments and things of value provided by the City hereunder shall be returned to the City; or (ii) the City may elect to treat this Agreement as being in full force and effect, in which event the City may either (a) bring suit against Sellers for the City's out-of-pocket expenses incurred in connection with this Agreement; or (b) bring suit to specifically enforce this Agreement.

(b) Default by the City. If the Closing does not occur by reason of any default under this Agreement by the City, Sellers' sole and exclusive remedy shall be reimbursal by the City of Sellers' appraisal costs pursuant to section 6(d) of this Agreement, as liquidated damages and not as a forfeiture or penalty. The parties acknowledge that in the event of such default by the City, Sellers will have incurred substantial unascertainable damages and that therefore the provision herein for liquidated damages is a valid one.

12. Notices. Unless applicable law requires a different method of giving notice, any and all notices, demands or other communications required or desired to be given hereunder by any party (collectively, "notices") shall be in writing and shall be validly given or made to another party if delivered either personally or by Federal Express or other overnight delivery service of recognized standing, or if deposited in the United States mail, certified, registered, or express mail with postage prepaid. If such notice is personally delivered, it shall be conclusively deemed given at the time of such delivery. If such notice is delivered by Federal Express or other overnight delivery selvice of recognized standing, it shall be deemed given twenty four (24) hours after the deposit thereof with such delivery service. If such notice is mailed as provided herein, such shall be deemed given forty eight (48) hours after the deposit thereof in the United States mail. Each such notice shall be deemed given only if properly addressed to the party to whom such notice is to be given as follows:

To Sellers:

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To the City:

AND TO

Seth Boettcher City of Bonney Lake Post Office Box 7380 Bonney Lake, Washington 98390

Any party hereto may change its address for the purpose of receiving notices as herein provided by a written notice given in the manner aforesaid to the other party hereto.

13. Survival of Representations and Warranties. All representations, warranties, covenants and agreements of the parties contained in this Agreement, or in any instrument or other writing provided for herein, shall survive Closing.

14. Finders' or Brokers' Fees. Each party warrants and represents to the other that it has engaged no broker or finder and has incurred no other commissions, finder's fees or other monies due any other person or entity by virtue of this transaction.

15. No Additional Representations and Warranties. Except as set forth in this Agreement, Sellers have made no representations or warranties whatsoever regarding this transaction or any fact relating thereto. The City is relying and will rely solely on the City's own inspections, tests, audits, studies and investigations.

16. Miscellaneous.

(a) Applicable Law. This Agreement shall in all respects, be governed by the laws of the State of Washington.

(b) Further Assurances. Each of the parties shall execute and deliver any and all additional papers, documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of its obligations hereunder, to carry out the intent of the parties hereto.

(c) Modification or Amendment. No amendment, change or modification of this Agreement shall be valid, unless in writing and signed by all of the parties hereto.

(d) Successors and Assigns. All of the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.

(e) Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties with respect to its subject matter and any and all prior agreements, understandings or representations with respect to its subject matter are hereby canceled in their entirety and are of no further force or effect.

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(I) Attorneys' Fees. Should either party bring suit to enforce this Agreement, the prevailing party in such lawsuit shall be entitled to an award of its reasonable attorneys' fees and costs incurred in connection with such lawsuit.

(g) Headings. The captions and paragraph headings used in this Agreement are inserted for convenience of reference only and are not intended to define, limit or affect the interpretation or construction of any term or provision hereof.

(h) Exhibits. All exhibits attached hereto are incorporated by reference.

(0 Counterparts. This Agreement may be executed in counterparts, and each set of duly delivered identical counterparts which includes all signatories shall be deemed to be one original document.

Q) Agreement Date. For purposes of calculation of all time periods described in this Agreement, all phrases such as "the date of this Agreement" or "the date of execution of this Agreement" or any other like phrase referring to the date of the Agreement, shall mean and refer to the date of the last signature on this Agreement.

OWNERS

BY:�/L¥ Louise R. Cope

Date: '1-.11)-0 '2

B�vb. 7z7�L / Evelyn . Mothershead

Date: '? - .3,; - <cO 3.

By: ��"-- J � Ina J. Smo

Date: c) Z- -'5 cJ- <) 3

LIFE ESTATE OWNER

By: ,dJ pJedA.. In, j�C'--Helen M. Thieman

Date: 1- J" ._ '2-<0:; g' \bonlk \00 1 \30721 [hicman-\\lLJoc

7/30/2003 10:11 AM

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B�:t � Irving L. Cope

Date: 1-3t2-0J

BY:� rdI � : MothersheaC!

Date: 7 --0 �t) 1 o ./

By: �l!lltZ � Ronald A. Smoke

Date: 0'7- '30- <?J 3

CT��1hlEY LAKE

EXHIBIT A TO PURCHASE AGREEMENT

LEGAL DESCRIPTION OF PROPERTI

That portion of the southwest quarter of the southwest quarter of section 35, township 20 north, range 5 east of the W.M., in Pierce County, Washington, described as follows:

Beginning 293.14 feet south of the northeast corner of the southwest quarter of the southwest quarter; thence south along said subdivision to the north line of Carlson Robert Road; thence west to a point 604.32 feet east from the east right-cif-way line of Vanden nark G.F. Gist) County Road; thence north 290 feet; thence west 302.28 feet; thence north 429.58 feet; thence east 302 feet; thence north 290 feet; thence east to the point of beginning, all in Pierce County, Washington as recorded under Pierce County Recording No. 1243916;

Less, the following described property (measured from the center line ofVandermark/J.F. Gist County Road and the center line of Carlson Robert Road also known as 96'h Street East), the north 429.58 feet of the south 749.58 feet of the east 302.28 feet of the west 634.50 feet of the southwest quarter of the southwest quarter of section 35, township 20 north, range 5 east of the W.M., in Pierce County, Washington;

Situate in the Count of Pierce, State of Washington.

EXHIBIT B TO PURCHASE AGREEMENT

LEASE AGREEMENT

LEASE AGREEMENT

THIS LEASE AGREEMENT ("Agreement") is made and entered into this day of ________ , 2003, by and between the City of Bonney Lake, hereinafter called "Lessor," and Helen M. Thieman, hereinafter called "Lessee."

THE PARTIES HEREBY AGREE as follows:

1. Lease of Real Property. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, for the uses set out in this Agreement, the real property described in Exhibit A, attached hereto, along with the single-family dwelling located on that property (collectively, "the Premises").

2. Term. The term of this Agreement shall commence on _________ _

2003 and shall continue in effect until the earlier of Lessee's death or such time as Lessee ceases to reside at the Premises; provided, that the term of this Agreement shall be no less than one year. Pursuant to RCW 59.18.415, this Lease Agreement being for the lease of a single family dwelling for a period of one year or more, the parties acknowledge that this Lease Agreement is exempted from the provisions of Ch. 59.18 RCW, the Residential Landlord-Tenant Act.

I, , being Lessee's attorney, hereby approve this agreement pursuant to RCW 59.18.415.

Signature Date

3. Rent. Lessee shall pay to Lessor annual rent in the amount of $1 per year, payable upon the commencement of each rental year.

4. Authorized Uses. The parties agree that the purpose of this Lease is for Lessee's own residential use, and no use other than those incidental to Lessee's residential use shall be made of the Premises.

5. Utilities. Lessee shall be responsible for payment of all costs relating to utility services, including power, water, sewer, telephone and data services; provided, that Lessor will pay all costs of installing a public water service connection to the Premises.

6. Alterations, Maintenance and Repairs. Lessee shall make no permanent alterations to the Premises without Lessor's written consent. Lessee shall be responsible for all maintenance and repair of the Premises, structural or otherwise, except that within six months of the commencement of this Lease, Lessor will provide or compensate Lessee for life-safety required repairs, corrections or maintenance to the Premises up to a total cost of $5,000.00 (five thousand dollars).

7. Indemnification; Insurance; Waiver of Subrogation.

A. Indemnification / Hold Harmless. Lessee shall defend, indemnify, and hold harmless Lessor, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Lessee's use of Premises, or from the conduct of Lessee's business, or from any activity, work or thing done, permitted, or suffered by Lessee in or about the Premises, except only such injury or damage as shall have been occasioned by the sale negligence of Lessor.

B. Insurance. During the term of the lease Lessee shall purchase and maintain a homeowners or renters insurance policy insuring the Lessee for direct damage to personal property, including improvements and betterments, on the Premises, personal liability, and medical payments of others coverage. The personal liability coverage shall have limits of liability of not less than $100,000 per occurrence.

C. Waiver of Subrogation. Lessee and Lessor hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the Premises. This release shall apply only to the extent that such claim, loss or liability is covered by insurance.

D. Evidence of Coverage. Lessee shall provide a certificate of insurance to Lessor evidencing the required insurance. The insurance certificate shall provide for a thirty (30) day notice of cancellation or change in the policy to Lessor.

8. Surrender of Premises. At the expiration of this Agreement, Lessee will quit and surrender the Premises in as good a state and condition as they now are, with due regard and consideration of ordinary wear and tear and damage by the elements and fire excepted.

9. Subletting and Assignment. Lessee agrees not to sublease or underlet the whole or any part of the Premises nor assign this Agreement, or any interest herein.

10. Attorney Fees. In the event of any dispute between Lessor and Lessee arising out of or incident to this Agreement, or arising out of Lessee's use or occupancy of the Premises, the prevailing party shall be entitled to recovery of its reasonable attorney fees and costs incurred.

11. Warranties. Lessor specifically disclaims any warranty of any kind or of any nature of the Premises, including a specific disclaimer of any fitness of the Premises for a particular purpose. Lessee shall be solely responsible for ensuring that the Premises comply with any and all legal requirements applicable to Lessee's use of the Premises.

12. Notices. All notices, requests, demands and other communications reqnired by this Agreement shall be in writing and shall be deemed to have been given at the time of delivery if personally delivered or three days after mailing if mailed by first class, postage pre-paid and addressed to the party at its address as stated in this Agreement or at such address as either party

2

may designate at any time in writing. The parties' addresses for notification pursuant to this Agreement are as follows:

Lessor: City of Bonney Lake Post Office Box 7380 Bonney Lake, Washington 98390

Lessee: Helen M. Thieman

13. Leasehold Excise Tax. The parties understand that this Agreement may be subject to the Leasehold Excise Tax imposed by Ch. 82.29A RCW. Lessor agrees to pay any such tax on Lessee's behalf.

14. Entire Agreement. This Agreement represents the entire Agreement between the parties. No change, termination or attempted waiver of any of the provisions of the Agreement shall be binding on any party unless executed in writing by authorized representatives of each party. The agreement shall not be modified, supplemented or otherwise affected by the course of dealing between the parties.

15. Waiver. Failure by any party to this Agreement to enforce any provision of this Agreement or to declare a breach shall not constitute a waiver thereof, nor shall it impair any party's right to demand strict performance of that or any other provision of this Agreement any time thereafter.

16. Severability. If any provision of this Agreement or its application is held invalid, the remainder of the Agreement or the application of the remainder of the Agreement shall not be affected.

LESSOR LESSEE

CITY OF BONNEY LAKE HELEN M. THIEMAN

Helen M. Thieman Date: ________ _

3

State of Washington

County of k//J& ) SS. )

HARWOOD T. EDVALSON NOTARY PUBLIC STATE OF WASHINGTON COMMISSION EXPIRES

OCTOBER 10, 2003

I certify that I know or have satisfactory evidence that Bob Young is the person who appeared before mc, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the

instrument and acknowledged it as the Mayor of the City of Bonney Lake to be the free and voluntary act of such

party for the llses and purposes mentioned in the instrument.

_'-"'--'-_ day of_--'�_7J"',,-,'�t" ______ , 20 0'3>

alY Public in and for the state of Washington, residing at _�;JgL-"-'rlI,.,.-,-",-i'¥="".J",,,, ___ _ y appointment expires (.0 -/O-Q *'

State of Washington ) ss.

County of ______ )

I certify that I know or have satisfactory evidence that Helen M. Thieman is the person who appeared before me, and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntary act for the llses and purposes mentioned in the instrument.

DATED this _____ day of ____________ , 20, ____ _

NotalY Public in and for the state of Washington, residing at ____________ '

My appointment expires __________ _

4

EXHIBIT A TO LEASE AGREEMENT

LEGAL DESCRIPTION OF PREMISES

Beginning at the SW corner of Parcel 052035-3062, go in the easterly direction along the southern boundary of said parcel 100 feet to the point of beginning of the easement. From the point of beginning go in the northerly direction 200 feet to a point then easterly 193 feet to a point, then southerly 200 feet to a point, then westerly along the southern boundary of said parcel 193 feet to the point of beginning.

5

EXHIBIT C TO PURCHASE AGREEMENT

QUIT CLAIM DEED FROM LIFE ESTATE OWNER

6

WHEN RECORDED RETURN TO,


Grantor: Helen M. Thieman

Grantee: City of Bonney Lake

QUIT CLAIM DEED

Abbreviated Legal Description: A portion the southwest quarter of the southwest quarter of Section 35, Township 20 North, Range 5 East, W.M., in Pierce County, Washington. Full legal description appears on page 3 herein.

Assessor's Property Tax Parcel or Account Number: 05-20-35-3-062

Reference Numbers of Documents Assigned or Released: nla

1

QUIT CLAIM DEED

The Grantor, Helen M. Thieman, conveys and quit claims for $10.00 consideration, and other good and valuable consideration, receipt of which is hereby acknowledged, to Grantee City of Bonney Lake, the real estate described in Exhibit A, attached hereto and incorporated herein by this reference, situated in the County of Pierce, State of Washington, together with all after acquired title of the Grantor therein.

DATED this ___ day of __________ , 2003.

GRANTOR HELEN M. THIEMAN

B� ______________________ ___

Helen M. Thieman


County 0( _____ --')

I certify that I know or have satisfactory evidence that Helen M. Thieman is the person who appeared before me, and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntary

act for the uses and purposes rnentionecl in the instrument.

DATED this ____ day of _____________ , 20 _ _ _ _ _

Notary Public in and for the state of Washington, residing at __________ _

My appointrnent expires _________ _

2

EXHIBIT A TO QUIT CLAIM DEED

LEGAL DESCRIPTION OF THE PROPERTI TRANSFERRED


Beginning 293. 14 feet south of the northeast corner of the southwest quarter of the southwest quarter; thence south along said subdivision to the north line of Carlson Robert Road; thence west to a point 604.32 feet east from the east right-of-way line ofYandermark 0.F. Gist) County Road; thence north 290 feet; thence west 302.28 feet; thence north 429.58 feet; thence east 302 feet; thence north 290 feet; thence east to the point of beginning, all in Pierce County, Washington as recorded under Pierce County Recording No. 1243916;

Less, the following described property (measured from the center line ofYandermark/J.F. Gist County Road and the center line of Carlson Robert Road also known as 96'1, Street East), the north 429.58 feet of the south 749.58 feet of the east 302.28 feet of the west 634.50 feet of the southwest quarter of the southwest quarter of section 35, township 20 north, range 5 east of the W.M., in Pierce County, Washington;


3

EXHIBIT D TO PURCHASE AGREEMENT

QUIT CLAIM DEED FROM OWNERS

WHEN RECORDED RETURN TO:


QUIT CLAIM DEED

Grantors: Louise R. & Irving L. Cope; Ina J. & Ronald A. Smoke; and Evelyn N. & E.M. Mothershead

Grantee: City of Bonney Lake

Abbreviated Legal Description: A portion the southwest quarter of the southwest quarter of Section 35, Township 20 North, Range 5 East, W.M., in Pierce County, Washington. Full legal description appears on page 5 herein.

Assessor's Property Tax Parcel or Account Number: 05-20-35-3·062

Reference Numbers of Documents Assigned or Released: nla

1

QUIT CLAIM DEED

The Grantors, Louise R. & Irving L. Cope; Ina). & Ronald A. Smoke; and Evelyn N. & E.M. Mothershead, convey and quit claim for $10.00 consideration, and other good and valuable consideration, receipt of which is hereby acknowledged, to Grantee City of Bonney Lake, the real estate described in Exhibit A, attached hereto and incorporated herein by this reference, situated in the County of Pierce, State of Washington, together with all after acquired title of the Grantors therein.

DATED this ___ day of __________ , 2003.

GRANTORS

By: ____________ _

Louise R. Cope

By: ____________ __

Evelyn N. Mothershead

By: ____________ __

Ina). Smoke

2

By: ____________ _

Irving L. Cope

By: ____________ __

E.M. Mothershead

By: ______________________ _

Ronald A. Smoke

State of Washington

) ss.

County of _____ -')

I certify that I know or have satisfactory evidence that Louise R. Cope is the person who appeared before me, and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntary act

for the uses and purposes mentioned in the instrument.

DATED this ____ day of ___________ , 20 ___ _

Notary Public in and for the state of Washington, residing at ____________ _



County of _____ -')

I certify that I know or have satisfactory evidence that Irving L. Cope is the person who appeared before me,

and said person acknowledged that he signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument.

DATED this ____ day of ____________ , 20 ____ _

NOI"alY Public in and for the state of Washington, residing at _____________ .


State ofWashi.ngton ) ss.

County of _____ --')

I certify that I know or have satisfactory evidence that Evelyn N. Mothershead is the person who appeared before me, and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntary act for the uses and purposes mentioned in the instrument.

DATED this ____ day of ____________ , 20, _ _ _ _ _

Notary Public in and for the state of Washington, residing at _____________ . My appointment expires __________ _

3

State of Washington

) 5S. County of _____ -')

I certify that I know or have satisfactory evidence that E.M. Mothershead is the person who appeared before mc) and said person acknowledged that he signed this instrument and acknowledged it to be his frec and voluntary act for the uses and purposes mcntioned in the instrument.

DATED this _____ day of ____________ , 20 ____ _


My appointment expircs ___________ _

State of Washington

) ss. County of _____ ..J)

I certify that I know or have satisfactory evidence that Ina J. Smoke is the person who appeared before me) and said person acknowledged that she signed this instrument and acknowledged it to be her free and voluntaty act for the useS and purposes mentioned in the instrument.

DATED this _____ day of ____________ , 20 ____ �


My appointment expires ____________ .


County of _____ �) I certify that I know or have satisfactory evidencc that Ronald A. Smoke is the person who appeared before

me, and said person acknowledged that he signed this instrument and acknowledged it to be his free and voluntaty act for the uses and purposes m.entioned in the insn·ument.

DATED this _____ day of ____________ , 20 ____ _

Notaty Public in and for the state of Washington) residing at ____________ _

My appointment expires ___________ _

4

EXHIBIT A TO QUIT CLAIM DEED LEGAL DESCRIPTION OF THE PROPERTY TRANSFERRED


Beginning 293.14 feet south of the northeast corner of the southwest quarter of the southwest quarter; thence south along said subdivision to the north line of Carlson Robert Road; thence west to a point 604.32 feet east from the east right-oi-way line of Vandermark 0.F. Gist) County Road; thence north 290 feet; thence west 302.28 feet; thence north 429.58 feet; thence east 302 feet; thence north 290 feet; thence east to the point of beginning, all in Pierce County, Washington as recorded under Pierce County Recording No. 1243916;

Less, the following described property (measured from the center line ofVandermark/J.F. Gist County Road and the center line of Carlson Robert Road also known as 96'" Street East), the north 429.58 feet of the south 749.58 feet of the east 302.28 feet of the west 634.50 feet of the southwest quarter of the southwest quarter of section 35, township 20 north, range 5 east of the W.M., in Pierce County, Washington;


5

:21

1111111 111111111111111 11111 1111111111 1111111111 1111111111 11111 1111 1111 200308191710 3 PGS 08-19-2003 03:59pm $21.00 PIERCE COUNTY. WASHINGTON

WHEN RECORDED RETURN TO

! AW OFFICES OF HAL J. SEIERSBACH 8�H) 11l4TH AvE. E, SJE, F BONNEY LAKE, WA 98390 /0/0/3091;2

fli'G MEMORANDUM OF LEASE

THIS MEMORANDUM OF LEASE, dated August 15, 2003, is between the CITY OF BONNEY LAKE, by and through its Mayor, BOB YOUNG, (herein called "Landlord") and HELEN M. THIEMAN, (herein called "Tenant").

1. Premises. Landlord hereby leases to Tenant, upon the terms and conditions of the Lease between the parties (herein called the "Lease) of even date herewith, which terms and conditions are incorporated by this reference, a portion of the real property, situated in the city of Buckley, Pierce County, Washington legally described as follows: (herein called "Premises").

SEE ATTACHED EXHIBIT 'A'

2. Term. The Lease shall be for a term of the life of HELEN M. THIEMAN commencing August 15, 2003.

3. Purpose of Memorandum of Lease. This memorandum of lease is prepared for the purpose of recordation, and it in no way modifies the Lease.

IN WITNESS WHEREOF the parties have set their hands and seals the date and year below stated.

LANDLORD:

CITY OF BONNEY LAKE

By date

TENANT:

� 1d-fi.v...- m. J� HELEN M. THIEMAN date

STATE OF WASHINGTON ss.

COUNTY OF PIERCE

On this day personally appeared before me BOB YOUNG, to me known to be the individual{s) described in and who executed the within and foregoing instrument and on oath stated that he was authorized to execute the instrument and aCknowledged it as the Mayor of the City of Bonney Lake to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.

\"'"'''''''''' ' .f( " "-t;rt£ IE�.;ny hand and official seal this ....Lli. day of

_��-;S�'�"�"O"L"�'�� ' , .' .. � �� , ...... _ ...... ""'-"!. � �. � � .. -� -:: : NOTARy, � :. � ... . .. � NoS>ry Public..t.�b/L::,�>.t.&;��!!... ____ _

; cP. '. PUBLIC l �:�nd for the S � � '" > II> •• ' ��d�ng at

='�c::+��-':"cul4�=

r+?>

--7:""_"------:. ..... �I��:'#'.;,!'.; ••. ,.·�b�, appointment e

•••• OF W�'!,� "", '''''" , . . .. ',,'

MEMORANDUM OF LEASE -1- of 2

STATE OF WASHINGTON 55.

COUNTY OF PIERCE

On this day personally appeared before me HELEN M. THIEMAN, to me known to be the individual(s) described in and who executed the within and foregoing instrument and acknowledged that she signed the same as her free and voluntary act and deed, for the uses and purposes therein mentioned.

r GIVEN under my hand

LL� , 2003. /1

and official seal this �'day of

MEMORANDUM OF LEASE - 2 - of 2

EXHIBIT A TO LEASE AGREEMENT

LEGAL DESCRIPTION OF PREMISES

Beginning at the SW corner of Parcel 052035-3062, go in the easterly direction along the southern boundary of said parcel 100 feet to the point of beginning of the easement. From the point of beginning go in the northerly direction 200 feet to a point then easterly 193 feet to a point, then southerly 200 feet to a point, then westerly along the southern boundary of said parcel 193 feet to the point of beginning.

City of Bonney Lake, Washington Council Agenda Bill (C.A.B.) Approval Form

De�artmentJStaff Contact: Council Meeting Date: Agenda Item Number

Seth Boettcher - Public

A'£Q� - 2.o'b Works Director ;T (.vl V) 2. Cj v;o s Ordinance Number: Resolution INumber: Councilmember S�onsor:

BUDGET INFORMATON

2003 Budget Amount Reguired Ex(!enditure Im�act Remaining Balance $ 2,000,000 $367,675 $367,675 $1 ,422,350

Ex�lanation: design contract $209,975 $577,650

Agenda Subject: Purchase Thieman property for a storage tank.

Administrative Recommendation: Recommend to the City Council to approve property purchase and authorize the Mayor to sign all re uired a erwork to close this transaction.

Background Summary:

See the attached Staff Report.

Council Committee Dates: Finance Committee:

Public Safety Committee:

Community Development & Planning Committee:

Council Workshop:

Council Action' Council Can for Hearing:

Council Referred Back to: Council Tabled Until:

Commission Dates: Planning Commission:

Civil Service Conunission:

Council Hearings Date:

Workshop: Council Meeting Dates:

Mayor

BoardIHearing Examiner Dates: Park Board:

Hearing Examiner:

Committee

Date City Attorney reviewed 7/9/03

July 22, 2003

03

PUBLIC WORKS DEPARTMENT STAFF REPORT

The City of Bonney Lake's mission is to protect the community's livable identity and scenic beauty through responsible growth planning and by providing accountable, accessible and efficient local

government services."

Theiman Land Purchase

Assessment of the Land Purchase

Brief Description We are proposing to buy 17 acres on 96th Street east about one block east of21 4th for $345,000 for a 1 5 million-gallon storage tank. The land has one house on it and a rental trailer. The land gently slopes to the east.

Is this a fair deal? Yes, we are paying the sellers appraisal price plus the closing costs and appraisal fee. We are not paying additional costs such as to avoid condemnation. It also should be recognized that the seller is also getting a good deal as well given that they do not have to pay a realtor. The value sounds low because the property is outside the UGA so it cannot be subdivided less than 5 acres.

What other options do we have? We do not have any other properties that we have started on negotiations except the PSE property that we pulled back from because of FERC and environmental reasons. Therefore we are in dire need to close this deal so we can move forward with the design of the storage tanle. Time is pressuring us to get moving on this project.

Will there be benefits to the City other than for a water storage tank. • The City could use the property for a park • The City could annex the property and use the City ownership to help build the case

to bring in a UGA amendment

Key Point to the Purchase and sale agreement

• The base price is $345,000 plus other costs as stated below • Mrs. Thieman (91 years old) will continue to live in her house the remaining

years of her life by leasing the house from the City for a dollar a year. 1 . Mrs. Theiman will buy renter insurance 2. WCIA was contacted and sent their recommendations to Jeff Ganson 3.

03 • The City will pay all closing costs, • The renter of the trailer will move out by Sept. 1 st.

July 22, 2003

• The City will inspect the house for life safety issues and will upgrade or repair problems up to $5000. This is to reduce risk in addition to insurance.

• The City will reimburse the seller for the cost of the appraisal. • The City will pay the Real Estate Excise tax. • The City will connect the existing house to the public water system without

charge to the seller but the renter will pay the moutldy water bills

What is the total cost?

I am not totally sure as I do not have an estimate from Escrow however see below my inexperienced total.

Base price House repairs Reimbursement for appraisal Connection to water Real Estate Excise tax 1 .5% Closing costs

Total

$345,000 $5,000 $4000 $5500 $5 175 $3000

$367,675

2003 Capital Projects

LAW OFFICES OF

HAL J. GEIERSBACH, P.S.c.

FRANK L. LABARE Attorney at Law

SHANNON M. W. KRAFT Altorney at Law

City of Bonney Lake P.O. Box 7 3 8 0 Bonney Lake, W A 9 8 3 9 0

A Professional Service Corporation

HAL J. GEIERSBACH Attorney at Law

February 1 6 , 20 0 4

Re : Thieman to City of Bonney Lake Real Estate Transaction Title Policy # 1 0 1 3 0 5 4 2

Dear City of Bonney Lake :

In connection with the above referenced transaction, we enclosed the fOl lowing :

Owners Policy of Title Insurance

CARRIE BIXEL Attorney at Law

SHERRI WHITE Attorney at Law

Thank you for allowing us t o serve you. We look forward to assisting you in the future.

dh Enclosure

V�l Y yours,

DARLE�'t��fAl/! .II. A� Legal Assistanr/fj/�

89\0 - 1 84'" Avenue E, Suite F, Bonney Lake, Washington 98390 - Phone 253 863-3366 - Fax 253 863-8749 1025 South 320 Street, Suite 205, Federal way Washington 98003 - Phone 253-839-3 1 3 1 Fax 253-839-8545

E-Mail GEIERSBACHLAW @HOTMAIL.COM

Order N o . : 101 30542 Issued by Commonwealth Land Ti tie Insurance Company OWNER'S POLlCY OF TITLE INSURANCE

COMMONWEALTH

SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, Commonwealth Land Title Insurance Company, a Pennsylvania corporation, herein called the Company, insures, as of Date of Policy shown i n Schedule A, against loss or damage, not exceeding the Amount of Insurance stated i n Schedule A, sustained Of incurred by the insured by reason of: 1 . Title to the estate o r interest described i n Schedule A being vested other than a s stated therein; 2 . Any defect i n o r l ien o r encumbrance o n the title; 3. U n marketability of the title; 4. Lack of a right of access to and from the land.

The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations.

Commonwealth Land Title Insurance Company

Attest: By: Secretary President

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1 . (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations)

restricting, regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the land; ( i i ) the character, dimensions or location of any improvement now or hereafter erected on the land; ( i i i) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the affect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed

in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest

insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the

operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based o n : ( i ) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer;

or ( i i ) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the

preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor,

ALTA Owner's Policy 1992 (Revised 10/17/92)

NF.17.07.00; SC No.: 11731

Page l of 4

Valid Only If Schedules A and B are Attached

Order No. : 101 30542

CONDITIONS AND STIPULATIONS

1. DEFINITION OF TERMS The fo!Jowing terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and, subject to

any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors.

(b) "insured claimant": an insured claiming los5 or damage. (e) "knowledge" or "known": actual knowledge, not constructive

knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land.

(d) " land": the land described or referred to in Schedule (A), and i mprovements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the l ines of the area described or referred to in Schedule (A), nor any right, title, interest, estate or easement in abutting streets, roads, avenues, a l leys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy.

(e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument.

(f) "publ ic records": records established under state statutes at Date of Policy for the pu rpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section I{a) ( iv) of the Exclusions From Coverage, "publ ic records" shaH also indude environmental protection l iens filed in the records of the clerk of the U n ited States district court for the district in which the land is located.

(g) "un marketabillty of the title": an a l leged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title.

2. CONTIN UATION OF INSURANCE AFTER CONVEYANCE OF

TITLE The coverage of this policy shall continue in force as of Date of

Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have l iabi lity by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (I) an estate or interest in the land, or (i i) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT

The insured shall notify the Company promptly in writing ( i) in case of any litigation as set forth in Section 4(a) below, (i i) in case knowledge shall come to an insu red hereunder of any claim of tiUe or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (ii i) i f title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shal l terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy un less the Company shal l be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF

INSURED CLAIMANT TO COOPERATE (a) Upon written request by the insured and subject to the options

contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insu red against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shaH not be l iable for and


wil! not pay the fees of any other counsel. The Company wi!! not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured by this policy.

{b} The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be n ecessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be l iable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently.

(c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order.

(d) In alJ cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shaH secure to the Company the right to so prosecute or provide defense in the action or proceeding, and a l l appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (i i) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation.

5. PROOF OF LOSS OR DAMAGE

In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage.

In addition, the insured claimant may reasonably be required to submit to examination under oath b y any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, i f requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others un less, in the reasonable judgment of the Company, it is necessary in the admin istration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any l iabi lity of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;

TERMI NATION OF LIABILITY In case of a claim under this poliCY, the Company shall have the

following additional options:

Page 2 of 4

Order No. : 1 0 1 30542

CONDITIONS AND STIPULATIONS (continued)

Ca) To Pay or Tender Payment of the Amount of Insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay.

Upon the exercise by the Company of this option, a l l l iabil ity and obligations to the insured under this policy, other than to make the payment required, shal l terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation,

(b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the

name of an insured claimant any cla'im insured against under this policy, together with any costs, attorneys' fees and expenses incu rred by the insured claimant which were authorized by the Company tip to the time of payment and which the Company is obligated to pay; or

(ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay,

Up{)n the exercise by the Company of either of the options provided for in paragraphs(b), (i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation, 7. DETERMI NATION, EXTENT OF LIABILITY AND COINSURANCE

This policy is a contract of indemnity against actual monetary loss or damage sustained or incu rred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described.

(a) The l iability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (li) the difference between the value of the insured estate or

interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy,

(b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following : (i) where no subsequent improvement has been made as to

any partial loss, the Company shal l only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy: or

( i i) where a subsequent improvement has been made, as to any partial loss, the Company shal l only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement.

The provisions of this paragraph shaH not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shalf only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A.

(c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations.

8, APPORTIONMENT If the land described in Schedule A consists of two or more parcels

which are not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shal l be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, un less a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to th is policy. 9. LI MITATION OF LIABILITY


(a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shal l not be liable for any loss or damage caused thereby,

(b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for Joss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured.

(c) The Company shall not be liable for loss or damage to any insured for liab'lIlty voluntarily assumed by the insured i n settling any claim o r suit without the prior written consent of the Company.

10. REDUCTION OF INSURANCE; REDUCTION OR TERMI NATION OF LIABILITY

All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 1 1 . LIABILITY NONCUMULATIVE

It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by a n insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12, PAYMENT OF lOSS

(a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company.

(b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shal l be payable within 30 days thereafter.

13. SUBROGATION UPON PAYMENT OR SETTLEMENT

(a) The Company's Right of Subrogation. Whenever the Company shaH have settled and paid a claim under

this policy, all right of subrogation shall vest in the Company unaffected by any act of the insu red claimant.

The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shal l transfer to the Company a l l rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies.

If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shal l be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss.

If loss should result from any ad of the insured claimant, as stated above, that act shal l not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this polley which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation.

(b) The Company's Rights Against Non�insured Obligors. The Company's right of subrogation against nonvinsured obligors

shall exist and shall include, without limitation, the rights of the insured to indemnities, guara nties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this polley.

Page 3 of 4

CONDITIONS AND STIPULATIONS (continued)

14. ARBITRATION

Unless prohibited by appl icable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to any controversy or claim between the Company and the insured arising out of o r relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. AI! arbitrable matters when the Amount of Insurance is $1,000,000 or less shal l be arbitrated at the option of either the Company or the insured. AU arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be a rbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator{s) may be entered in any court having jurisdiction thereof.

The law of the situs of the land shall apply to an a rbitration under the Title Insurance Arbitration Rules.

A copy of the Rules may be obtained from the Company upon request. 15, LIABI LITY LIMITED TO THIS POLICY; POLICY ENTIRE

CONTRACT

(a) This policy together with a l l endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole.

(b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy.

(c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company.

15. SEVERABILITY I n the event any provision of the policy is held invalid or

unenforceable under applicable law, the policy shall be deemed not to include that provision and at! other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT

All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shal l be addressed to Consumer Affairs Department, 1 0 1 Gateway Centre Gateway One Richmond, VA 23235�5 1S3.


Order No. 101 30542

Page 4 of 4

LAN DAM ERJCA: Order No, : 10130542

P RIVACY POLICY N OTICE

The Financial Services Modernization Act recently enacted by Cong ress has brought many changes to the fi nancial services ind ustry, which includes i nsurance companies and their agents , One of the changes is that we are now req uired to expla in to our customers the ways in which we collect a nd use customer i nformatio n .

The statement attached t o or o n the reverse s i d e o f this letter i s the privacy policy o f the

La ndAmerica fa mi ly of companies. The three la rgest members of the fa m i ly -Commonwealth Land Title Insura nce Company, Lawyers Title Insurance Corporation, and Tra nsnation Title Insura nce Company - may issue policies a n d handle real estate closings i n v i rtually every part o f the cou ntry. A n u mber o f other companies i n the fa mily provide other real estate services, and some operate more local ly. You may review a l ist of LandAmerica companies on our website (www.landam.co m ) . You may also visit our website for an explanation of our privacy practices relati n g to electronic communication.

Our concern with the protection of you r i nformation has been a part of our business since 1 876, when the company that is now Commonwealth Land

'Title Insurance Company issued

its first policy. We wi l l continue to protect the privacy, accuracy, a n d security of customer i nformation g iven to us.

No response to this notice is requ i red, but if you have questions, please write to u s :

La ndAmerica Privacy P.O. Box 27567

Rich mond, VA 23261-7567.

LandAmerica Compa n ies

Title Insurance Companies: Commonwealth Land Title Insurance Company, Commonwealth Land Title Insurance Company of New Jersey, Industrial Valley Title Insurance CompanYI Land Title Insurance Company. Lawyers Title Insurance Corporation, Title Insurance Company of America, Transnation Title Insurance Company, Transnation Title Insurance Company of New York Relocation and Mortgages: Commonwealth Relocation Services, CRS Financial Services, Inc,! LandAmerica Account Servicing, Inc. Title Agents: American Title Company of Dallas and Fort Worth, Austin Title Company, A TACO, Inc., Albuquerque Title Company, Atlantic Title & Abstract Company, Brighton Title Services Company, Capitol City Title Services, Inc" CFS Title Insurance Agency, Charleston Title Agency; Charter Title Company of Fort Bend, Galveston, and Sugarland; Commercial Settlements, Inc" Commonwealth Land Title Company; Commonwealth Land Title Company of Austin, Dallas, Fort Worth, Houston, Washington, Congress Abstract Corp" Cornerstone Residential Title, Cumberland Title Company, First Title & Escrow, Inc" Gulf Atlantic, Harbour Title, HL Title Agency, Lawyers Title Company; La wyers Title of Arizona, EI Paso, Galveston, Nevada, Pueblo, San Antonio, Lawyers Title Settlement Company, Lion Abstract, Longworth Insured, Louisville Title Agency of Central Ohio, Lorain County Title Company, Mil Title Agency, NIAI Lawyers Title Agency, Oregon Title, Park Title, Partners Title Company, Pikes Peak Title Services, REIAffirm Title Agency, Rainier Title Company, Residential Abstract, Residential Title, Rio Rancho Title, Texas Title CompanYt Title Transfer Service, Inc" TransOhio Residential Title Agency, Transnation Title & Escrow, Union Title Agency, University Title Services, Wilson Title Company Appraisals and Ancillarv Services: LandAmerica OneStop, Inc.

Form 3391-6 (May 2001) WA.03.06.00

Page 1 of 2

LAN DAMERICA P RIVACY POLICY

What kinds of i nformation we collect. Most of LandAmerica's business is title insurance, but there are companies in our fam ily that provide other real estate services to consumers. We collect information a bout you , (for instance, your name, address, telephone number) , and information a bout you r transaction, including the identity of the real property that you are buying or fi nancin g . We obtain a copy of any deeds, n otes, or mortgages that are involved i n the transaction. We may get this information from you or from the lender, attorney, or real estate broker that you have chosen. Our title insurance companies then obtain i nformation from the p u bl ic records about the property so that we can prepare a title i nsurance policy. When we provide cloSi ng, escrow, or settlement services, mortgage lending, or mortgage loan servicing, we may get your social security n u m ber, and we may receive additional i nformation from th i rd pa rties including appraisals, credit reports, land su rveys, escrow account bala nces, and sometimes bank account n u mbers to faCilitate the transactio n . If you are concerned about the information we have collected, please write to us .

• How we use this information. The company giving or specifica lly adopting this notice does not share your information with ma rketers outside its own fa mily. There's no need to tell us to keep your i nformation to ourselves because we share your information only to provide the service requested by you or your lender, or in other ways perm itted by law. The privacy laws permit some sharing without you r a pprova l . We may share internal ly and with nonaffil iated third pa rties in order to carry out a n d service you r transaction, to protect against fraud or unauthorized transactions, for i nstitutional risk control, a n d to provide information to govemment and law enforcement agencies. Compa n ies within a family may share certa i n information among themselves in order to identify a n d ma rket their own products that they th ink may be useful to you . Credit information about you is shared only to facil itate your transaction or for some other purpose permitted by law.

• How we protect your information. We restrict access to nonpubl ic personal information about you to those em ployees who need the information to provide prod ucts or services to you. We mainta i n physical, electronic, and proced u ra l safeg u a rds that comply with law to g u a rd your non publ ic personal information. We rei nforce the company's privacy policy with our employees.

• Agents that may be covered by this policy. Often, your transaction goes through a title i ns u rance agent. Agents that a re part of the LandAmerica family are covered by this

policy. Agents that are not part of the LandAmerica fa mily may specifica lly, in writing, adopt our policy statement.

Form 3391-6 (May 2001) Page 2 of 2

COMMONWEALTH

OWNER'S POLICY OF TITLE INSURANCE

SCHEDULE A

Order No. : 101 30542

Amount of Insurance: $345,000.00 Policy Number: 10130542

Premium: $ 791 . 00

Date of Policy: Aug ust 19, 2003 at 4 : 30 PM

1 . Name of Insured:

City of Bonney Lake

2 . The estate or interest in the land which is covered by this Policy is:

A FEE SIMPLE ESTATE

3 . Title to the estate or interest in the land is vested in:

City o f Bonney Lake

4. The land referred to on this Policy is described as follows:

See Exh i bit A attached hereto.

Authorized Signature

ALTA Owner's Policy ( 1 0/1 7/92) NF.1S.1B.03; SC No.: 1 1 7 3 1

Page 1 of 5

SCHEDULE B

EXCEPTIONS FROM COVERAGE

Order No. : 101 30542

This Policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1 . Taxes or assessments which a re not now payable or which are not shown as existi ng liens by the records of any taxing authority that levies taxes or assessments on real property or by the publ ic records; proceed ings by a publ ic agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the pu bl ic records.

2 . Any facts, rights, interests o r claims which are not shown b y the publ ic records but which co uld be ascertained by an i nspection of the land or which may be asserted by persons i n possession, or claiming to b e i n possession, thereof.

3 . Easements, l iens o r encum brances, o r claims thereof, which are not shown by the pu blic records.

4. Discrepancies, conflicts i n boundary lines, shortage in a rea , encroachments, or any other facts which a correct survey of the land would d isclose, and which are not shown by the pu bl ic records.

5. Any l ien, or right to a l ien, for labor, material, services o r equipment, o r for contributions to employee benefit plans, or l iens under Workmans' Compensation Acts, not disclosed by the publ ic records.

6 . ( a ) U n patented min ing claims; ( b ) reservations o r exceptions i n patents o r i n Acts authorizing the issuance thereof; (c) Indian treaty or aborig inal rights, includ ing, but not l im ited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted u nder (a) , (b) , (c) or ( d ) are shown by the publ ic record s .

7. Right o f use, control o r regulation b y the United States o f America in the exercise o f powers over navigation ; any prohibition or l i mitation on the use, occu pancy or i mprovement of the land resu lting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water.

8 . Any service, i nstal lation, connection, mai ntenance o r construction charges for sewer, water, electricity, or g a rbage collection or d isposal, or other utilities u n less disclosed as an existing lien by the public records.

SPECIAL EXCEPTIONS:

ALTA Owner's Policy (10/17/92) Page 2 of 5

Order No . : 10130542

SCHEDULE B (continued)

1. General taxes, as follows, together with i nterest, penalty and statutory foreclosure costs, if a ny, after del i nquency: ( 1 st half del inq uent on May 1 ; 2nd half del inquent on November 1 )

Tax Account No.: 0520353062 Year Amount Bil led 2003 $2,796.00

Amount Pa id $ 1 ,398.00

Amount Due $ 1 ,39 8 . 0 0

FOR PAY-OFF IN FORMATION, PLEASE CONTACT THE PIERCE COU NTY ASSESSOR-TREASURER'S OFFICE AT (253) 798-61 1 1 .

The current levy code is 665.0.

2 . GENERAL TAXES AND POTENTIAL SUPPLEI\1 ENTAL ASSESStJl ENTS, i nclud i ng other a m o u nts due thereunder, which results from any change in tax exempt status. The land is cu rrently carried on the tax rolls as exempt from taxes. On the date of a conveyance or change in use which removes it from exempt status, the land wi l l become subject to general property taxes from that date forward.

In addition, supplemental assessments for general property taxes for prior years also be levied agai nst the land. For further information rega rding the above, contact the Cou nty Comptroller.

Tax Account No. 0520353062

3. EASEMENT AND THE TERMS AND CONDITIONS THEREOF:

GRANTEE :

PURPOSE:

AREA AFFECTED :

RECORDED: RECORDING NO. :

RAYMOND C. COYNE AND INEZ J . COYNE, WIFE AND H USBAND IN STALL, MAINTAI N, REPAIR AND REPLACE ONE WATER LINE FOR DOM ESTIC USE SEE DOCUMENT FOR APPROXIMATE LOCATION NOVEMBER 19, 1963 2033792

4. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF:

RECORD E D : RECORDING N O . : REGARDING :

ALTA Owner's Policy (10/17/92)

APRIL 24, 1969 22909 13 EASEMENT FOR WATER PIPELINE AND RIGHT TO WITHDRAW WATER FROM WELL

Page 3 0f 5

Order No. : 101 30542

SCH E DULE B (continued)

5. AGREEMENT AND THE TERMS AND CONDITIONS THEREOF:

RECORDED: RECORDING N O . :

JANUARY 2 1 , 1974 2536419

6. DECLARATION OF BOUN DARY LIN E REVISION imposed by instrument recorded on SEPTEMBER 22, 1988, u nder Record ing No. 8809220411 .

7 . ROAD AND UTILITY EASEMENT A N D THE TERMS AND CONDITIONS THEREOF:

RECORDED: RECORDING NO. : REGARDING :

SEPTEMBER 26, 1988 8809260333 A 30 FOOT ROAD AND UTI LITY EASEMENT

END OF EXCEPTIONS

Commonwealth Land Title Insurance Company is a Pennsylvania corporation, a wholly owned subsidiary of LandAmerica Financial Group, Inc., and is in no way affi l iated or connected with Commonwealth Title Company of Pierce County, Washington.

bjd

ALTA Owner's Policy (10/17/92) Page 4 of 5

Order No, : 10130542

EXHIBIT A

THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 35, TOWNSHIP 20 NORTH, RANGE 5 EAST OF THE W , M . , IN PIERCE COU NTY, WASHINGTON, DESCRIBED AS FOLLOWS:

BEGINNING 293. 1 4 FEET SOUTH OF THE NORTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER; THENCE SOUTH ALONG SAID SUBDIVISION TO THE NORTH LINE OF CARLSON ROBERT ROAD; THENCE WEST TO A POINT 604.32 FEET EAST FROM THE EAST RIGHT-OF-WAY LINE OF VANDERMARK (J , F. GIST) COU NTY ROAD; THENCE NORTH 290 FEET; THENCE WEST 302.28 FEET; THENCE NORTH 429.58 FEET; THENCE EAST 302 FEET; THENCE NORTH 290 FEET; THENCE EAST TO TH E POINT OF BEGINNING, ALL IN PIERCE COU NTY, WASHINGTON AS RECORDED U N DER PIERCE COU NTY RECORDING NO, 1243916;

LESS, THE FOLLOWING DESCRIBED PROPERTY ( M EASURED FROM THE CENTER LINE OF VANDERMARK/J.F , GIST COUNTY ROAD AND THE CENTER LI NE OF CARLSON ROBERT ROAD ALSO KNOWN AS 96TH STREET EAST), THE NORTH 429 ,58 FEET OF THE SOUTH 749 , 58 FEET OF THE EAST 302,28 FEET OF THE WEST 634, 50 FEET OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 35, TOWNSHIP 20 NORTH, RANGE 5 EAST OF THE W . M " IN PIERCE COUNTY, WASHINGTO N ;

SITUATE IN T H E COU NTY OF PIERCE, STATE OF WASHINGTON,

COMMONWEALTH Order N o . : 10130542

HOMEOWNER'S ADDITIONAL PROTECTION E N DORSEMENT

ATTACHED TO OWNER'S POLICY NO. 1 0 130542

ISSUED BY COMMONWEALTH LAND TITLE INSURANCE COMPANY

This Endorsement shall be effective only if at Date of Policy there is located on the land described in said Policy a one-tofour family residential structure, in which the insured owner resides, either at Date of Policy or within one ( 1 ) year of Date of Policy, as the insured owner's principal residence. For the purpose of this Endorsement the term "residential structure" is defined as the principal dwelling structure located on said land, together with a garage or carport used for storage of noncommercial vehicles. The term "residential structure" shall not include detached outbuildings (other than a garage or carport as defined herein), driveways, walkways, boat ramps, docks, recreational facilities of any kind, subsurface lines, pipes, tanks, septic systems and/or drainfields, plantings of any nature, perimeter fences or perimeter walls, or any other improvements which are not an integral part of the residential structure.

The Company hereby insures the insured owner against loss or damage which the insured owner shall sustain by reason of:

1 . the existence at Date of Policy of any unrecorded statutory Hens for labor o r materials attaching to the estate or interest referred to in Schedule A arising out of any work of improvement on the land in progress or completed at Date of Policy, except those liens arising out of a work of improvement for which the Insured has agreed to be responsible.

2. the removal of the residential structure or interference with the use thereof for ordinary residential purposes as the result of a final Court Order or judgment, based upon the existence at the date of the Policy of:

a. any encroachment of said residential structure or any part thereof onto adjoining lands, or onto any easement shown as an exception in Schedule B of the Policy, or onto any unrecorded subsurface easement;

b. any violation on the land of enforceable covenants, conditions or restrictions provided that this coverage shall not refer to or include the terms, covenants, conditions or restriction contained in any lease, sublease or contract of sale referred to in the Policy;

c. any violation of applicable zoning ordinances to the extent that such ordinances regulate; (a) area, width or depth of the land as a building Site for the residential structure; or (b) floor space area of the residential structure; or (c) setback of the residential structure from the property l ines of the land; or (d) height of the residential structure.

3. damage to the residential structure resulting from the exercise of any right to use the surface of said land for the extraction or development of the minerals, if any, shown as an exception in Schedule Sf or excepted from the description of the land.

For purposes of this Endorsement, the words "covenants," "conditions" or "restrictions" shal l not be deemed to refer to or include any covenants, conditions or restrictions relating to environmental protection, except to the extent that a notice of violation or alleged violation affecting the land has been recorded in the public records at Date of Policy and is not excepted in Schedule B.

This Endorsement is made a part of the Pollcy and is subject to al l of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof.


WA Form - Homeowner's Additional Protection (1/12/95) WA.13.47.00; SC No.: 1 1 7 3 1

Page 1 of 1

{{ , , {{, COMMONWEALTH

RESIDENTIAL INFLATION E NDORSEMENT

ATTACHED TO OWNER'S POLICY NO. 10130542

ISSUED BY

COMMONWEALTH LAND TITLE INSURANCE COMPANY

Order No, : 101 30542

The Company, recognizing the current effect of infiation on real property valuation and intending to provide additional monetary protection to the insured owner named in said Policy, hereby modifies said Policy, as follows:

1. Notwithstanding anything contained in said Policy to the contrary, the amount of insurance provided by said Policy, as stated in Schedule A thereof, is subject to cumulative annual upward adjustments in the manner and to the extent hereinafter specified,

2 . "Adjustment Date" i s defined, for the purpose o f this Endorsement, to be 1 2 : 0 1 A . M . o n the first January 1 which occurs more than six (6) months after the Date of Policy, as shown in Schedule A of the Policy to which this Endorsement is attached and on each succeeding January 1 .

3. An upward adjustment will be made on each of the Adjustment Dates, as defined above, by increasing the maximum amount of insurance provided by said Policy (as said amount may have increased theretofore under the terms of this Endorsement) by the same percentage, if any, by which the United States Department of Commerce Composite Construction Cost Index (base period 1967) for the month of September im mediately preceding exceeds such Index for the month of September one ( 1 ) year earlier; provided, however, that t h e maximum amount of insurance in force shall never exceed 150% of the amount of insurance stated i n Schedule A of said Policy, less the amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulations, reduces the amount of insurance for years in which there is no increase in said Construction Cost Index.

4 . I n the settlement o f any claim against the Company under said Policy, the amount o f insurance i n force shall b e deemed to be the amount which i s i n force a s o f the date o n which the insured claimant first learned of the assertion or possible assertion of such claim, or as of the date of receipt by the Company of the first notice of such claim, whichever shall first occur.

5 . The coverage provided by this Endorsement shall b e effective only i f one o f the following conditions exist at Date of Policy:

a . The land described in this Policy is a parcel o n which there is only a one-to-four family residential structure, in which the insured owner resides or intends to reside, or;

b . The land consists of a residential condominium unit, together with the common elements appurtenant thereto and related to residential use thereof, in which the insured owner resides or intends to reside.

This Endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, 'It neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof.


WA Form - Residential Inflation (1/1/94) WA.13.S7.00; SC No.: 11731

Page 1 of 1

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City Council/Planning Commission Minutes

Page 2 July 29, 2003

completed before the mandatory date of December 2004. Director Leedy introduced Special Projects Planner Ladd to make a PowerPoint presentation.

Special Projects Planner Ladd gave an overview of the Phase I Comprehensive Plan Update process and defined the elements included in Phase I as the Community Character Element, the Natural Environment Element, the Land Use Element and the Housing Element. As a part of the update process, he said that staff research had identified 65 inconsistencies between the land use and the zoning maps to address. He added that another element of the current update is the Sumner School District Application dealing with Bonney Lake Elementary School. Planner Ladd said that overall the update would provide more concise language, update facts and figures, updated goals and policies and reworked and better maps. He said the update would incorporate the best available science.

Deputy Mayor Swatrnan asked questions about senior housing and the R-3 zone. Councilmember DeLeo asked about the downtown area. The Council, Planning Commission and members of the Design Commission discussed the downtown area and the possible mix of housing and services that would be provided there. Planning Commissioner Weber said that he had always felt Bonney Lake was fragmented, and that most people considered the downtown core as the true Bonney Lake.

Councilmember Johnson asked about an economic development plan. Mayor Young responded

that the Comprehensive Plan would provide a basis for an economic development plan. There was further discussion about development in the East-town and Mid-town areas. Councilmember Rackley asked if the large development in the Mid-town area was redefining the center of town.

Planning Commission Chairman Burnham said that the Comprehensive Plan should have more detail about the East-town and Mid-town areas. Councilmember King asked that the Design Commission provide more information about the dimensions of human scale that are envisioned in the downtown area.

Deputy Mayor Swatman stated that the Design Commission needs to be part of the process. Director Leedy explained the history of the Design Commission, and the need to educate them on the issues and their role. He said they were now prepared to take an active part. Councilmember DeLeo suggested that the Design Commission meet with representatives of Target to see what is currently feasible for big-box design to meet community needs. There was general consensus from all present that this would be a good idea. Director Leedy said he would coordinate the necessary arrangements.

Chairman Burnham thanked the Council for their input. He said the Commission did not want to make recommendations that were clearly at variance with Council desires. Mayor Young expressed appreciation for the participation of all the Council and Commission members.

IV. Real Estate Acquisition

Mayor Young said that the attorney had recommended some changes to the proposed real estate agreement. He said that Councilmembers should replace Page 2 of the agreement with the one j ust provided by Director Boettcher. Pro Tern City Clerk Edvalson read the title of the

City Council/Planning Commission Minutes

Page 3 July 29, 2003

resolution, "Resolution 1 1 5 8 - A Resolution Of The City Council Of The City Of Bonney Lake, Pierce County, Washington, Authorizing A Purchase And Sale Agreement Between The City Of Bonney Lake And Louise R. & Irving L. Cope, Ina 1. & Ronald A. Smoke, And Evelyn & E.M. Mothershead; And Helen M. Thieman For Real Property Identified As Assessor's Property Tax Parcel Or Account # 05-20-35-3-062; And Authorizing A Lease Agreement With Helen M. Thieman For Same.

Council member Rackley moved to adopt Resolution 1 1 58, with the substitute page for Page 2 of the agreement. Councilmember Johnson seconded the motion.

Councilmember Rackley asked if some agreement had been reached on the price. Public Works Director Boettcher replied, yes. He said the price was $345,000 plus some other obligations as part of the agreement. Since Ms. Thiemann is going to lease the property for her remaining years rather than own it, Director Boettcher said that the City will inspect the home for life-safety issues and make necessary repairs up to $5,000. He added that City will reimburse the family for the cost of the appraisal, connect the house to City water, and pay the closing costs and the real estate excise tax all for a total estimated cost of$367, 675.

Councilmember DeLeo asked if there was a potential park use for the property and if it would have to wait until after the tenant vacated the property. Director Boettcher said that the tenant would have the use of approximately an acre of the property, but that she was aware park uses could be developed on the remainder of the property. Councilmember King pointed out that she was certainly aware that an at-grade storage facility was going to be installed, which would create a fair amount of construction disturbance. Mayor Young said that she was aware of this planned use of the property. Director Boettcher explained that the parcel of property is 1 7± acres In slze.

Council member DeLeo said that he had previously mentioned the possibility of contacting neighbors in this area about the potential for a regional park site. He asked at what point it would be appropriate for him to start making contacts. Director Boettcher recommended consulting with the rest of the Council. Administrative Services Coordinator suggested that Councilmember DeLeo certainly wait until after the purchase closes escrow. Mayor Young said that then Council member DeLeo could bring it to Council for discussion and go from there.

XI. ADJOURNMENT

Motion approved 5 - O.

Having no further business to conduct, Mayor Young adjourned the meeting at 7:33 p.m.

Harwood T. Edvalson, Pro Tem City Clerk Robert Young, Mayor